Relative Risk vs. Return Landscape
If you would invest 2,092
in ADTRAN Inc on April 24, 2013
and sell it today you would earn a total of 126.00
from holding ADTRAN Inc or generate 6.02%
return on investment over 30
days. ADTRAN Inc is currenly generating 0.39% of daily expected returns and assumes 2.08% risk (volatility on return distribution) over the 30 days horizon. In different words, 27% of equities are less volatile than ADTRAN Inc and 78% of traded equity instruments are projected to make higher returns than the company over the 30 days investment horizon.
Daily Expected Return (%)
Given investment horizon of 30 days, ADTRAN Inc is expected to generate 3.65 times more return on investment than the market. However, the company is 3.65 times more volatile than its market benchmark. It trades about 0.19 of its potential returns per unit of risk. The S&P 500 is currently generating roughly 0.35 per unit of risk.
ADTRAN Operating Margin
Based on recorded statements ADTRAN Inc has Operating Margin of 7.4%. This is 141.78% lower than that of Technology sector, and 143.71% lower than that of Communication Equipment
industry, The Operating Margin for all stocks is 306.7% lower than the firm.
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.
ADTRAN Return On Equity vs Return On Asset
ADTRAN Inc is rated fifth
in return on equity category among related companies. It is rated below average
in return on asset category among related companies reporting about 0.55
of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for ADTRAN Inc is roughly 1.81